Now that we have covered the basics of CRMs and explained what CRMs are, let’s move on to the next question that naturally follows: why does any business need a CRM?
It’s true that we have already mentioned certain advantages of CRM software in the previous blog post, but we haven’t really outlined all the benefits of a reliable CRM.
This article will describe the main advantages of CRMs as well as explain why companies need them to improve their businesses.
More available and affordable than ever
CRMs are no longer reserved for companies with large budgets. As the CRM market started its rapid growth in 2010, these systems gradually became more affordable and available to a wider range of businesses.
Today, small companies can easily afford a fully functional CRM for a very modest price. In fact, an increasing number of CRM systems are now offering free, basic versions for small businesses.
Additionally, the fierce competition that was borne out of this rapid market growth means that CRMs were forced to expand their list of features, offering more functional solutions at lower prices.
Now, almost all CRMs have optimized mobile versions or applications, which was a rarity even just a few years ago. This is especially important in light of the new research that shows that the number of salespeople that meet their sales quota rises by as much as 300% if they use a mobile CRM.
Improves the return on investment
Implementing a CRM is arguably the most foolproof way to improve your return on investment. Research shows that each $1 spent on CRM brings in at least $5 in revenue, with some estimates claiming that the figure can rise up to $8.71.
How does a CRM provide such exceptional results?
It streamlines manual tasks and processes, reducing the number of hours spent on repetitive tasks and allowing employees to focus on developing more effective business strategies.
By automating tasks, CRMs also allow employees and staff members to spend more time engaging with customers and improving customer relationships.
Provides better conversion rates
Cloudswave has found that a fully implemented CRM can significantly improve the conversion rates.
This is a direct consequence of the reduced workload that is made possible by automating tasks and processes. Employees spend considerably more time working with clients, nurturing leads and forming relationships.
When a salesperson collects customer data and stores it on a CRM platform, they can better understand the needs and desires of each specific customer as well as follow up with a personalized approach that can even increase the customer lifetime value.
Additionally, Cloudswave has shown that 75% of companies have no defined process for nurturing leads. This means that most businesses have a poor understanding of their leads, their position in the sales cycle and their expectations.
In other words, companies are losing a notable portion of leads due to their inability to assess them and differentiate them from uninterested consumers. A high-quality CRM software helps solve this problem by automating lead nurturing and marketing processes.
Integrated email marketing campaigns that can be run from CRMs such as Simply greatly improve the conversion rates and help convert leads to clients.
Streamlines marketing efforts
The best CRMs are designed with your clients in mind.
They revolve around collecting valuable data that allows you to find the optimal marketing strategy to reach and establish your target audience through automated tasks.
As mentioned earlier, CRMs improve the conversion rates by relying on the customer information collected through the system. This can be taken a step further through carefully tailored and personalized ads that help the marketing departments optimize their campaigns.
However, that is only possible thanks to the powerful platforms that most CRMs offer, as will be explained here.
Increases customer retention and satisfaction
According to Capterra, half of all CRM users think that the software helps them build more meaningful client relationships and increase customer satisfaction.
In other words, CRMs increase customer retention by improving the overall quality of customer support, as they allow the company to store valuable personal information from each client. Each staff member can easily look up a customer’s profile, their purchases and communication history to better respond to their needs and desires.
This is vitally important because satisfied customers are more loyal and likely to continue working with a business. They are essential for the long-term success of any business.
Offers a powerful platform
CRMs centralize all data on a single platform that is available 24/7, while comprehensive reports and analytics help managers make informed decisions about the company’s work processes.
While storing customer data on internal spreadsheets and documents can be beneficial when the company needs unique reports, their use brings far more negatives than positives.
Such documents are rarely stored using cloud technology, which greatly limits their accessibility. Even the unique reports that can be made from these sheets are far from the ideal solution, considering the fact that it can take days and even weeks to create them. Investing so much time into a single report is unjustified when CRMs such as Simply can create comprehensive reports within seconds.
On top of everything, the unique, manually created sheets can contain outdated information, which means that the reports can be practically useless, given that a significant portion of data in them can simply be incorrect.
As mentioned earlier, advanced CRM systems provide instant access from all types of devices with an Internet connection. This allows sales representatives to reduce the duration of the sales cycle by as much as 14%, according to Nucleus Research.
The all-in-one platform offered by CRMs provides staff members with a clearer overview of the most valuable customer information. This way, CRMs promote better cooperation between employees and improve alignment between the company departments.
Acts as a long-term solution for businesses
As explained in this article, CRMs offer various benefits to businesses and they are practically a necessity in the highly competitive global market, even though their adoption rate stands at just 26%.
Most users give up on the program, because they do not use the CRM platform regularly and consistently. This low adoption rate outlines the importance of staff training and education on the best uses of CRM.
While CRMs are undoubtedly a great solution, users should understand that they need to fully adopt them and make them the focal point of their work. People who do not use CRMs on a daily basis can easily forget all the processes, the metrics and task management options that are available to them. This eventually prevents them from successfully using their CRM.
Research from the Aberdeen Group has recently shown that the most effective sales teams are 81% likely to use a CRM software on a regular basis. The benefits of CRMs are clear, but they cannot improve your business unless you and your employees are willing to put in the necessary effort.
However, once you fully adopt the CRM, your business will have the potential to start growing exponentially.
If you have any questions or comments about CRMs, feel free to contact us. Our support team is available non-stop and they will be more than happy to help you find the best solution for your business.